The 2016 VideoMarketing GuideWhat to do and why to do it... and how, as well.

Table of Contents

2 Welcome!

3-5 Does Video Marketing Work?

4 Short Answer 4-5 Long Answer

6-9 A Quick History Lesson

7 Where We Were... 7-8 ...Here We Are? 8 Where We Are Going 8-9 How Video Will Be Used

10-13 The Truth About YouTube

11 Your Audience Doesn’t Appreciate Cheapness 12 YouTube Delivers Strong Financial Results 12-13 There Is A Formula For Success... YouTube Said So!

14-17 What Will Change In 2016

15-16 The Old Model 16-17 The 2016 Model

18 Thank You

Let’s get started, shall we?

1

Welcome to the 2016 Video Marketing Guide!

This is a free resource for marketers, communication folks, and anyone who is interested in learning more about the fast-expanding universe that is video marketing.

By exploring current trends and time-tested best practices, this guide will arm you with the knowledge to make well-informed decisions on how to most effectively utilize video in your organization. It will also give you insight into how the best of the best are investing in this medium and maximizing their dollars. So let’s get started, shall we?

Cheers!

Jake LeVoirMarketing Videos and CampaignStrategy for Business

www.slateandmain.com

2

Does VideoMarketing Work?

According to Forbes, Eloqua, CMO, BrightCove, Moz, Internet Retailer, eMarketer, Cisco, Forrester Research, ReelSEO, Invodo, Brainshark, CoStar, and basically everyone else… yes, it does work.

The long answer? Well, that’s best done in bullet points:

• Forbes believes in video -- here are some facts from their study:o Video is becoming a critical information source for senior executives.o 80% of executives are watching more video online this year than last

year, and that number continues to increase.o Work-related video can drive senior executives to take action. Overall,

65% have visited a vendor’s website after watching a video. Youngerexecutives, however, may be more fully engaged with this type ofmedia, and appear more likely to make a purchase, call a vendor, orrespond to an ad.

• An average of over 100 million individuals watch video on the internet everyday (Video Brewery).

• That number of digital viewers is expected to increase by more than 22million viewers between now and 2017 (eMarketer).

• It's estimated that by 2017, video will account for over 69% of all consumerinternet traffic (Cisco).

• According to BrightCove, a hosting platform used by the likes of NY Times,GM, and Macy's: "Now a full 7 in 10 B2B marketers create and distributeoriginal videos online” (BrightCove).

• YouTube is the second most used search engine in the world. It is beat onlyby it's owner, Google who HUGELY favors video content for this reason(Mushroom Networks).

• 93% of respondents in the B2B Demand Generation Benchmark Industry-View study said that they prefer video over white papers, case studies, andeven live demos with reps (Software Advice).

• Click-through rates in email increase by 2-3 times when a video is included(CoStar).

• Videos, properly submitted, are 53 times more likely to generate a first pageGoogle ranking than traditional SEO (Search Engine Watch).

4

Does Video Marketing Work?

• Dr. James McQuivey of Forrester Research claims that the value of oneminute of video is the same as 1.8 Million words (follow the good Dr onTwitter, here).

• Jeremy Scott from ReelSEO claims that videos in universal search resultshave a 41% higher click through rate than their plain text counterparts.Why? Because search engines (like Google) work really, really hard to havewhat they call a "mix of content displayed in search results." Basically, that'sjust fancy talk for saying that there is a disproportionately high ranking forvideos because of the push for multi-medium representation in searches(ReelSEO).

• Last year, 52% of marketing professionals around the globe credited videoas the type of content with the highest ROI (Invodo).

• The average American is pounded with an estimated 5,000+ advertisements--wait for it--per DAY! The reason you don't remember very many isbecause humans retain only 20% of what we hear and 30% of what we see,but we retain 70% of what we hear and see (aka: video). That's why lots ofmarketers are using it! (Social Media Learning).

Video Strategy Yet unfortunately, even with all of that information, there is still a “good news vs. bad news” vibe hanging around video marketing that reads something like this:

The GOOD News: Video marketing effectiveness is increasing for 87 percent of companies, according to a new report from Ascend2.

The BAD News: Nearly half of those companies surveyed say the lack of an effective strategy remains their most challenging video marketing obstacle.

Let's take a big step back and ask the right question here: Why would an organizationor individual start a marketing effort without a strategy? The reason there is a lack of effectiveness seen with many attempts at video marketing today can be chalked up to a lack of strategy. Video has historically been a big-budget expense and, because of that, has been planned as a “one-off” or “project-to-project” type need instead of a comprehensive marketing strategy.

“Why would any organization or individual start any sort of marketing effort without a strategy?”

5

A Quick History Lesson

A lot of organizations, marketers, consultants, and the like wonder what the future of video looks like. Not necessarily what cameras will be used or styles employed, but, pragmatically, how will video be used? More? Less? Online? Television? How?

If you haven't noticed already, the world (and especially the world of marketing) hasexpanded quickly but has never really changed. Advertising has always been and will always be about one thing: gaining advocacy for your brand and the productsor services offered by it. To be fair, the expansion of digital and hyper-social media (especially paid) over the past few decades has been surprising and exponential. However, at it's core, behind the curtain is still the same wizard as always pulling the same levers.

Where We Were... One of the brightest modern video minds, Jimm Fox of OMM, has this to say:

“Back in the ‘big-iron’ days of corporate video, you took some shots of the the corporate headquarters, threw in a couple talking heads yammering on about the company’s mission statement and their place in the universe, added in a whack of superfluous motion graphics and $25,000 later, voila! – you had yourself a corporate video.

Fast forward to just a few short years ago when Sony introduces the EX1 camera, shooters like Phillip Bloom start telling everyone their secrets, Canon accidentally turns their DSLR’s into fantastic little video cameras and you have the makings of a revolution. Today, everyone and their aunt is a video producer, and…. Here we are.”

...Here We Are?Yup, here we are, in what our grandkids will remember as "The Digital Revolution."And before we jump into video production, a definition of what in the world that means is necessary.

The digital revolution has not changed what marketing is, just the way that we now can market. What does that mean? It means that instead of only creating general products for general audiences, we can now create niche products for niche audiences. And here's the kicker: we can target, track, and monetize them with custom campaigns that actually work. It's possible because the internet has very effectively transformed lack-of-proximity to your leads from an unscalable wall into a very manageable hurdle.

For example, you can sell balloons to balloon-fanatics in Japan right here from your

7

A Quick History Lesson

living room and make it work! And the best part isn't just that we can get over the problem now; it's that we can track and improve on how we did it and how we will continue to in the future.

Instead of only creating general products for general audiences, we can now create niche products for niche audiences.

Where We Are GoingAnd that brings us to video. If digital marketing is a hand, than video is one of many fingers (although we only use five in this example to avoid being creepy):

Fingers are really good at grabbing but the truth is, without the palm, they're effectively useless. The palm is your website. It's where you hold all of your information, prospects, hopes and dreams.That makes the goal of video--and other "fingers of digital marketing"--to grab prospects and bring them back to your website/palm, where you can then get their contact information and work to convert them into a buyer.

Video works as the "first impression," so to speak, that your brand has with it's audience. It's power is invaluable, and that is why we have already begun to see it's massive implementation into most major companies.

How Video Will Be Used So if we aren't in the "Iron Age" of video production as Mr. Jimm Fox so eloquently put it, where are we? We are in the digital age of video production, meaning that a lothas changed. Here is what you need to know to make educated decisions about where and how to invest in video:

1. Having a Marketing Approach to Video Is EVERYTHING. Because videoproduction isn't just about your toys anymore, it is now more importantthan ever to create excellent content. Think about this: video has grown,

8

almost every company and individual has a YouTube channel, and--here it is--they are using them! There is SO MUCH VIDEO ON THE INTERNET. The point? Having a camera that can capture X quality doesn't make you a video producer any more than owning a pen makes you a professional writer. The key differentiator in video production isn't your equipment, (although that is important, more here) it is your approach and execution.

The truth is the majority of video content published on the web is only achieving one purpose: clogging up searches. If you want to create a video that will have a positive effect you will need to invest time and money into crafting your message. Businesses will continue to create their own video because they can and because, for some projects, it actually makes sense to go that route. However, in the words of Jimm, "Those same businesses will also experiment and waste time and resources on more complex video projects that they will ultimately out-source but, like a petulant toddler, they'll have to make these mistakes and suffer through the pain in order to learn."

2. Specialization in a vertical or style is key. Generic solutions already get lostin the new digital marketplace thanks to the digital revolution, so whywould video be any different? It won't be. And that specialization will onlyget stronger and stronger. However, there is a uniqueness with contentcreation that deserves some mention: specific business verticals (ex:medical, real estate, banking, etc) are not necessarily what you, MarketingDirector, should be looking for from your video production company. Youshould be looking more for specialization in a type and/or style of video.Think about Sandwich Video (recognizable style), 2minuteexplainer.com(generic explainer video) or Variable (consistent high quality).

The truth is, there is NOT, regardless of what anyone tells you, a "one-size- fits-all" video production package. And that's because your organization is

unique--and that's good! That's why buying a new camera doesn't change anything. But telling a client how video can solve their business problems.... Well, that changes everything.

3. Consistent integration of video within social platforms and the greatermarketing mix. Currently video is a bit of a stand-alone activity for mostbusinesses and that is quickly going bye-bye. Not only was 2015 dubbed"the year of video" by Marketing Profs because of the amount of spendinginto this category, but the analytic side of the business has finally "caught-

up," so to speak. The best indication of that "arrival" as a mainstream business activity is the fact that news articles and video producers have finally stopped mentioning this month’s YouTube upload figures. We don't need to "prove it" anymore to businesses and business leaders, it's here, it's known, and you're behind if you're not jumping on board.

9

The TruthAbout YouTube

Have you ever wondered why your competitor (or maybe even your sloppy, unprofes-sional uncle) racked up more views than your video that was just released on your company's homepage WITH an associated blog post?! (so frustrating).

If you want to use video as part of your marketing, you are going to have to learn about production.... And YouTube.

But what in the world do you need to know? Here are three of the biggest data-points and pro-tips you need in your back pocket BEFORE you start pumping out videos on the interwebs:

1) Your Audience Doesn't Appreciate Cheapness and Corner-CuttingThis whole idea of "all you need is a webcam" is garbage. And don't take myword for it, just be honest with yourself. When was the last time you actuallywatched someone's webcam video for an extended period of time? I'd loveto tell you differently, but even just one quick peek at the YouTube TrendsBlog will say otherwise.

To be fair, it's true that a webcam will suffice in creating content that mayluck it's way into receiving exposure, but only if you have an incrediblyengaging video personality and are very okay with low levels of productionvalue. Having won the lottery once or twice before may be a good sign.

But let's face the music and stop skimping ourselves: brands that are willingto spend money on marketing are not okay with receiving low quality. Why?Because it cheapens their brand and compromises their offering. And theyprobably don’t know anything bout producing videos to enhance their brand--and that's okay!They shouldn't be. They should be experts at what they do, not at craftinga video about it.

Think about it like this: your competitors are savvy and they are pumping big dollars into video and seeing results. And no, making videos that no one watches and are not tracked is not being competitive; it's wasting your time and potentially your money.

The Truth About YouTube

11

“If you want to use video as part of your marketing, you are going to have to learn about the production process.”

2) YouTube Delivers Strong Financial Results and Robust Usage StatsAgain, don't take my word for it. According to a recent article published oneMarketer.com, "Despite an increasingly competitive environment in whichestablished players and startups alike are venturing headfirst into videocontent and advertising, YouTube has continued to deliver strong financialresults and robust usage stats. The Google-owned platform is poised forfurther success as marketers continue to regard it as an essential elementin their branded content and advertising campaigns, according to a neweMarketer report, "YouTube Advertising: Why Google's Platform Will StayOn Top."

To take it a step further, AndrewHanelly, senior vice president ofaudience engagement atManifest, said: "I would be veryinterested in hearing where othersare saying that they feel that YouTube ad targeting comes upshort, because I think it's a hugeadvancement from what we'reused to, and I think we're gettingspoiled in how we spend our adand marketing dollars. For videoplatforms, YouTube does thebest job of providing granulartargeting opportunities at scale.It's hard to not sound like a spoiled brat when criticizing YouTube, becauseit's a marketer's dream."

Want one more to really rub home the point? Mark Aikman, marketingcommunications department manager at Mercedes-Benz USA speaks veryhighly of YouTube's data analytics capabilities. "As far as video metrics, its'probably the gold standard," he said. "It tells you how many views you'regetting, what's the drop-off, where people came into your video from,where they viewed it...." (for more, read this article: "What Do MarketersThink of YouTube Data and Analytics?").

3) There Is a Formula for Success... YouTube Said So!Here's some little-known information: back in the day, YouTube adamantlyopposed revealing "keys to success" or "best practices" for creatingpopular content on their channels. The reason? The entire goal of theirbrand was to create a place where original content was fostered andshared organically. So strong was this push that in July of 2008, the You-

12

Tube Spotlight channel uploaded an animated short called, "The Birds and the Biz", which claimed there was no "magic formula" or "secret potion" for content marketing success. "The truth," according to Papa Bear, was You- Tubers "never really know what crazy thing will be next" (Search Engine Watch: "YouTube Reveal the Secret Formula to Content Marketing Success").

Well that all COMPLETELY changed when YouTube's CEO, Suzie Reider, lifted the veil. On March 31, 2014, Suzie spoke at the 2014 ANA Media Leadership Conference where, among other things, she unveiled this...

THE YOUTUBE CREATOR PLAYBOOK FOR BRANDS

Read it. It will change the way you think about video and marketing forever. That resource was created by YouTube (and Google, their owner) to, and I quote, "Create a YouTube strategy to help your brand stand out in today's evolving digital era. Includes concepts and examples to help you create great content, devise a holistic channel strategy, use paid and non-paid means to promote your videos and learn the tools to measure your results".

Ladies and gentlemen, this isn't smoke and mirrors. The truth about YouTube is that it's 2016 and the best way to use video to grow your brand isn't a secret. How to market the content isn't disguised behind curtains like the Wizard of Oz anymore.

That said, creating that content needs to be done with care and it should never ever be done "easily" or "quickly." You don't do any of your other marketing like that, so why would you start creating your most interpersonal pieces that way?

13

What WillChange In 2016

2016 brings with it the launch of lots of new resolutions, goals, budgets, and trends. So what will the biggest trend of 2016 be in the video world? Very likely, it will go to how it is purchased.

Everyone knows the old iron days of video production are long gone. Yet as recently as this time last year, many companies made common practice of the old video production hiring model:

1) Decide you want to create a video.

2) Create an RFP (Request For Proposal) with requirements and explanationsof what you feel are important to the success of your project.

3) Collect quotes back from 3-5 vendors.

4) Select the best bid (generally lowest price that proves it can do the project).

Ok, sounds like a good model right? Well, it was... back in the glory days. The reason that model doesn't work anymore is actually pretty simple: video isn't used as a "one-off" marketing effort anymore. But don't take it from me; Brad Jakeman, the President of Global Beverage Group at PepsiCo, claims, "the agency model won't bend, it will break".

Jakeman's argument is that most companies are stuck 20 years in the past, back when creating a few pieces of video content a year with a budget of X HundredThousands (or Millions) of Dollars per project -- aka, "big budget TV spots" -- was normal. The more common model now, Jakeman explains, is for brands to push out more like 400 to 4,000 pieces of content a year on a $10K to $100K budget (not all video, but certainly a great deal of it being video).

The reason it isn't practical to RFP out individual video projects and expect awesome results is because video is becoming increasingly more similar to email marketing,

Trends To Expect In 2016

"The agency model won't bend, it will break"

15

social networking, and other forms of what we would call "consistent engagement."

Think about it like this: when you make a video,your competition isn't just with others

in your field, but also with everyone else whois uploading video content. Why? Because if no one can find your video, believe me, they won't watch it. And the trouble is that "getting found" is more about producing consistent content than it is about creating one zinger.

You would never send out just one email.

"Brands used to create 4 pieces of content per year... now they create closer to 4,000."

You would run a campaign! You would never send out one piece of direct mail. You would run a campaign! Why would video, the fastest growing form of communication (even outside of marketing), be any different? Video isn't different, it's exactly the same. In fact, if anything, isn't video marketing the one place you'd ensure someconsistency? Hopefully.

So... What Now?2016 is going to leave a lot of marketers who refuse to adjust their approach to video in the dust. Successful marketers know they need video but the ones who see anysuccess with video will be willing to approach this content strategy with new eyes. Probably more similar to this:

1) Decide amount of budget to commit to video.

2) Consult with a couple of video teams on how they would recommend spendingthe budget -- whether that be in one big ol' project or 50 smaller ones.

3) Hire the team and partner with them throughout the year.

I'd venture to guess the entire video production industry will begin to turn this way for four main reasons:

1) It's more cost-effective for everyone involved. Businesses know what theyare spending and video companies know what they're working with. Thatmakes things easy to plan and simple to execute.

2) You can pick how you pay. Sounds crazy at first but listen: depending on

16

the video company you are working with, things like monthly, bi-monthly, quarterly, etc. retainer-type models are becoming the new normal.

You will be buying X amount of production time from your team per year and letting them deal with all of the details.

3) You are maximizing your budget. This should be painfully obvious. Whenyou buy in bulk, you save mula. What if your first video only has a largerprice tag because it requires building a set... but once it's built that cost isgone forever? What if you could actually wrap all ten of your commercialsfor the year up into four shoot days instead of the ten individual ones?

4) You are fostering creativity. This one is a little more out there but bear withme. One of the biggest misunderstandings on the planet lives in the activelygrowing gap between "creatives" and "business" folks. I'm here totell you that there are outfits (namely, video marketing companies) thatbridge that for you. You just have to give them a little rope.

2016 will fundamentally change how companies purchase video content... especiallyfor their marketing. It will become a decision between hiring a full-time employee or an outsourced video marketing solution.

What will you choose?

17

Thank YouPlease feel free to contact us with any questions!Jake LeVoir | jake@slateandmain.com | (651) 766 - 6661

4354 Round Lake Rd W Arden Hills, MN 55112